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31-03-2022, 07:16 PM
#19541
Member
And this is effective from ex rights date? 7pm 5th April?
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31-03-2022, 07:45 PM
#19542
$2.2b will probably last just over a year, with salary the 2nd highest bill, costing the airline more than a billion each year. So unless borders open soon, hopefully by Nov/Dec, and fuel price stabilise it'll continue to be a turbulent ride for the foreseeable future. Direct flight to NYC from Sept is way too soon I reckon. No point in doing that unless you can fill the plane and with testing cost still sky high I doubt that budget tourist will be back in force until next year when most countries finally rid of testing and vaccine requirements.
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31-03-2022, 08:07 PM
#19543
Agree that the new route to New York is mainly about window dressing the revive and thrive story.
https://www.goodreturns.co.nz/articl...or+31+Mar+2022
Jarden and Craigs have updated their target price 1 year hence and see it as 60 and 64 cents respectively, average target price 1 year from now is 62 cps.
Required rate of return in this, which is obviously a very high risk industry, must be at least 10% per annum so that suggests a fair value of about 62 x 0.9 = 56 cps next month. That values the rights @ 3 cps.
I see it as less than that as noted earlier today.
Just for fun...One thing is for sure AIR's aircraft will not be climbing out anything like these ones https://www.youtube.com/watch?v=zC89uDi8mEg
Fun fact as to why airshow demonstrations with the F22 fighter jet are so short.
According to one video I watched the commentator said they burn US 300 gallons (about 1125 liters) a minute, nearly 20 liters a second on full afterburner and they only hold 7500 liters so you get about 5 minutes on full afterburner and its time to land. Obviously in combat anywhere not close to a tanker aircraft for inflight refueling one uses afterburner very sparingly lol.
Last edited by Beagle; 31-03-2022 at 09:02 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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31-03-2022, 10:46 PM
#19544
Correct. An adjustment is also made to the entry price to account for the theoretical rights price.
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31-03-2022, 11:46 PM
#19545
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01-04-2022, 07:21 AM
#19546
Member
Originally Posted by JohnnyTheHorse
Which would typically be extra collateral as if you were short on a sell price of the rights issue. But again will come down to individual agreements.
Does anyone have experience with how CMC markets treat this? Their website says
Rights issues
With a rights issue, a company will offer its shareholders a chance to buy newly issued shares, usually at a discounted price, before they are offered to the public.
In these circumstances, CMC Markets' clients might get to choose between three courses of action relating to share spread bets. They may be able to:
1. Sell their rights
2. Take up their rights and trade the cheaper stock
3. Do nothing and let their rights expire
Its not clear how this applied to short positions so was hoping someone has been through this before?
Also, if any adjustment is made would it be expected to occurred on the 5th April at 7pm? (I.e. open the next day at the adjusted price)
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01-04-2022, 08:18 AM
#19547
Member
who the hell would want to ever be in the airline industry, its so full of risk
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01-04-2022, 08:18 AM
#19548
Member
Totally, run for the hills
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01-04-2022, 10:06 AM
#19549
another day of million on order in the depth down to 1.20....
this could go on and on... sheep over a cliff...
investors who short can comment.
Last edited by Waltzing; 01-04-2022 at 10:07 AM.
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01-04-2022, 10:09 AM
#19550
Originally Posted by shareman
who the hell would want to ever be in the airline industry, its so full of risk
more so when the blundering arty Politicians on the hill are having a big meddle in things
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